Reference no: EM131652472

You are required to submit a two page typed minor case study that will contain four sections. You can use one additional page to provide tables of calculations, graphs or other diagrams as appropriate to the case. This additional page IS NOT for continuing your discussion of the 4 sections of the case you are required to submit.

Sections of the case study

Section 1: Background (One paragraph)

This paragraph should include a brief overview of the salient background information provided in the case. This information should be relevant for your consideration of the company's problems and issues (It must add value!).You MUST NOT reproduce the text of the case - you only have to include what is pertinent to the problems and issues of the case!

You need to describe the relevant characteristics of the business(its products/services, processes, existing systems (e.g. cost system), strategy and any important stakeholders (if relevant), etc.); relevant characteristics of the industry in which the business participates (intensity of competition; how the industry is changing etc.); relevant general business conditions (market/economy growing or in recession etc), and any other relevant information that should be considered as background for the case.

Section 2: Problems and Issues (One paragraph)

In this paragraph, you must identify (i) the problem(s) facing the company and (ii) the issues that could be causing the problem(s) the company is facing and how you can see this manifesting in the details of the case (i.e., why did you come to this conclusion?). You should provide a brief discussion of the problem and issues (i.e. how they relate?) but do not analyse.

Remember, from the Huff and Weber, How to Prepare a Case guide, a problem is something fairly specific and reasonably well understood - even if its solution is not (e.g., profits keep falling even though we believe we are doing a good job). An issue is a more general thing - it also requires attention but needs to be better understood before specific solutions are considered (e.g., our costing system is reporting inaccurate costs, why?).

You need to get an understanding of the problem and issues before you can diagnose the underlying cause and recommend potential solutions! In order to help you identify the problem(s) and issues, questions are provided for the case. Some questions will relate to this second section; others will relate to the analysis and the recommendations you should consider. It is up to you to work out how the questions should be addressed in your case.

Note: regarding case questions provided, you should answer the questions, where possible, as a cohesive part of your submission and NOT as 'answers to questions'. These questions are designed to prompt your thinking and analysis; therefore your responses should be blended into the paragraphs as part of your statements, arguments or recommendations. Answering the questions as asked without following the case requirements will lead to poor results.

Section 3: Analysis to support your finding of the company's problems and issues

Once you have identified the problem and issues, consider information in the case that is relevant to them and also consider the theory, concepts and techniques we have learned in class thus far. Try to diagnose the underlying cause of the problems and issues you have identified and support it with analysis. In addition, analyse the effect of alternative decisions you may make in this case comparing the current situation with what you would suggest. If in this case, data and exhibits are provided for you to analyse and find evidence to support your claims - use them here. You may present information of your analysis in tables or graphs where appropriate and simply refer to them in the body of your case.  The tables etc can be presented on the additional page.

A further note: Do not provide your solutions or recommendations in this paragraph!  A summary or conclusion of your findings is appropriate here - not in your recommendations.

Section 4: Recommendations

In this paragraph, you should provide your recommendations for addressing the problem(s) and issues you have identified. These recommendations are actions that should help to resolve or alleviate the problems and issues you have identified in Section 2 and should be appropriately supported by the analysis you have presented above in section 3 (i.e., does it all link? Is it a cohesive argument?). You may also consider if there are any limitations to implementing your suggested recommendations, or to your analysis.

Questions to be considered in this case:

1. What is the competitive environment faced by Dakota Office Products and its distribution department?

2. What is the existing pricing system at Dakota Office Products? Does it have apparent issues? How does it operate? What are the costs and apparent profitability of products under the existing costing system?

3. Using your answer to Question 2 calculate the profitability of Customer A and Customer B.

4. What explains any difference in profitability of Customer A and Customer B?

5. What are the limitations is any to the estimates of the profitability of the two customers?

6. Is there any additional information you would like to explain the relative profitability of the two customers?

7. Assume that Dakota applies the analysis done in Question 3 to its entire customer base. How could such information help the Dakota managers increase company profits?

Note: These questions should assist with your consideration of the problems and issues in the case as well as your recommendations; however the answers to these questions DO NOT form your case study. You must follow the requirements provided above.